Targeting Healthy Living with
Functional Foods & Beverages W. John Short, CEO & President Grand Hyatt, New York May 27-28, 2015
© 2015 RiceBran Technologies All rights reserved
Disclaimer
This presentation includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, readers and listeners are cautioned that such forward-looking statements represent management's opinion. Although management believes that the expectations reflected in our forward-looking statements are based on reasonable assumptions, actual results may differ materially from those described. The company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in the company's filings with the US Securities and Exchange Commission. The company undertakes no obligation to update the results of these forward-looking statements to reflect events or circumstances after today or to reflect the occurrence of unanticipated events. This presentation does not constitute an offer to sell securities including but not limited to within any jurisdiction in which the sale of such securities would be unlawful. This presentation does not constitute a solicitation or offer to sell securities. Such offer and the information set forth herein have not been reviewed, approved or disapproved, nor has the accuracy or adequacy of the information set forth herein been passed upon, by the Securities and Exchange Commission or any state securities administrator. Any representation to the contrary is a criminal offense. An investment in the securities offered by the company is speculative and involves a high degree of risk. Investment in the securities offered hereby is suitable only for persons of substantial financial means who can afford a total loss of their investment. The Company is a reporting company pursuant to the Securities Exchange of 1934, as amended, and makes periodic filings with the Securities and Exchange Commission (“SEC”) at the SEC’s Web site at www.sec.gov. Prospective investors are urged to read these documents and any other relevant documents to be filed by the Company with the SEC when they become available because they contain and will contain important information.
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© 2015 RiceBran Technologies All rights reserved
Unlocking the Nutritional Value of Rice Bran
The Value of RIBT’s Proprietary and Patented Technologies
Rice bran has traditionally been a low value byproduct of rice milling directed mostly to animal feed
The enzyme lipase causes raw rice bran to degrade quickly after milling
RIBT’s proprietary and patented technologies allow us to stop the degradation and “convert feed to food”
Our technologies provide a vast renewable and sustainable source of healthy, whole food nutrition without the need for additional farming
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© 2015 RiceBran Technologies All rights reserved
Unlocking the Nutritional Value of Rice Bran
Stabilized Rice Bran is Nutrient Dense
100% White Rice (1 cup)
Glycemic Load = 91 (estimated)
Daily Value
0
Nutrients
0
Daily Value
100%
Calories Carbohydrate Fat Protein Fiber Vitamin A Vitamin C Vitamin D Vitamin E Vitamin K Thiamin Riboflavin Niacin Vitamin B6 Folate Vitamin B12 Pantothenic Acid Choline Betaine Calcium Iron Magnesium Phosphorus Potassium Sodium Zinc Copper Manganese Selenium
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© 2015 RiceBran Technologies All rights reserved
Unlocking the Nutritional Value of Rice Bran
Rice Bran (1 cup)
217% 201% 240%
Glycemic Load = 10 (estimated)
230% 122% 198%
838%
Other Micronutrients 400 mg phytosterols 165 µg carotenoids 290 mg ɣ-oryzanols 1.8 g inositol
The Enormous Global Potential of Rice Bran
Million Metric Tons
Rice bran has enormous potential for global nutrition and health
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18 16 14 12 10 8 6 4 2 0
© 2015 RiceBran Technologies All rights reserved
Global Rice Production 2% U.S. Brazil/Uruguay/Argentina 8 % 31 % China 59 % Rest of World
Unlocking the Nutritional Value of Rice Bran
RIBT’s Technology Platform
Stabilization Proprietary Equipment Know-How
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Bio-Refining
Human Food/Health Aqueous Chemical Enzymatic Separation
© 2015 RiceBran Technologies All rights reserved
Validation
Applications Meat, baking, beverage, health foods
Animal Feed/Health
Equine, pork, cattle, companion pets
Human Clinicals Animal Studies In Vitro Studies Product Formulation Product Development Partnerships
Unlocking the Nutritional Value of Rice Bran
Validation: Evidence-Based Functionality
Cholesterol Lipid Human clinical: Reduction in serum cholesterol, LDLcholesterol, apolipoprotein B and triglycerides
All RiceBran Technolgies ingredients are: Non-GMO; Gluten-Free; Wheat-Free; Soy-free; Dairy-Free; Zero Cholesterol; Made from whole grain .
Product Data Sheet
US - powder US - powder
yes yes
yes
1
4
yes yes
US - powder
yes
yes
1, 8
4,8
US - powder Brazil - powder Brazil - oil R&D only R&D only
yes yes yes
yes
1, 8
4,8
Trade Mark
7
RiSolubles™
7
RiFiber RiBran DF cRBO RBExt-INF RBExt-GLC
7
RiBran Ribalance™
Trade Secret
Manufacture
Patent
Ingredient
yes
Human Pub Clinical
IP
Glucose Metabolism Human clinical: Reduction in serum glucose and glycosylated hemoglobin, and increase in insulin In vitro: increase glucose uptake into adipocytes and inhibition of FABP4
Human In Vitro Clinical Studies
Pub
IP
yes
1,5,6 5,6
yes yes yes
1,5,6 5,6 2,3 2 1,5,6 5,6
Weight Satiety
GI Health
Human clinical: Induces satiety
Inflammation Joint Health
Animal study: Reduction of adenoma development in the intestine; inceases faecal transit; enhances GI microflora
Human Pub IP Clinical
Animal Studies
Pub
IP
Animal study: Formulations comprised or RiSolubles or Rice Oil combined with other active ingredients to provide inflammation relief and joint health in horses In vitro: Inhibition of COX1,2 and 5-LOX Human PK: biouptake of active compounds Human Animal PK Studies
Yes
2
2
Horse
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For details go to www.ricebrantech.com front page and click on Nutraceutical & Functional Foods Research & Development, Patents and Independent Research
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© 2015 RiceBran Technologies All rights reserved
IP
9
9
Mouse 11b Horse
13,16
Pub
Mouse 11, 12
10, 14 PK, 13
In Vitro Studies
Unlocking the Nutritional Value of Rice Bran
9 9 10, 14 10,15
2013 – Emerging Market Opportunity
Entered 2013 as ingredient provider to animal feed and human food; market trends highlighted a unique opportunity Sales were stagnating for traditional CPG companies Consumer awareness of health benefits and preventative effects of functional foods was growing The movement “from pharmacy to grocery” was in full swing – especially among the 72 million millennials and 83 million baby boomers Global functional food market in 2013 reached $237 Bn; US market $58 Bn; projected annual growth of nearly 7%
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© 2015 RiceBran Technologies All rights reserved
2014 – Transformation to Product Solutions Provider
RIBT RIBTW Up-listed to NASDAQ
Healthy Natural capacity doubled
Acquired Healthy Natural
● ●
Developed Strategic Plan
Initial Capital Raise
2013
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© 2015 RiceBran Technologies All rights reserved
● ● ●
● ●
●
50% capacity increase at Irgovel
Additional Capital Raises
Doubled capacity at Dillon plant
2014
Unlocking the Nutritional Value of Rice Bran
2015
2015 – Turnkey Health and Wellness Product Solutions Provider
After completing Healthy Natural acquisition and plant expansion in 2014, RIBT entered 2015 well positioned to capitalize on health and wellness trends with packaged functional foods and nutricosmetics
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Newly installed capacity at Healthy Natural, Dillon and Irgovel can support $100 million to $150 million sales over 3 to 5 years
Product development, formulation, blending and contract manufacturing capabilities are driving new sales opportunities for packaged functional foods
Investments in technology are supporting FSMA, GMP, Kosher, Halal and HACCP compliance
Market opportunities go beyond functional foods into other high margin categories such as nutricosmetics
© 2015 RiceBran Technologies All rights reserved
Unlocking the Nutritional Value of Rice Bran
2015 - Targeting Healthy Living Segment
Many Opportunities - Focus on Functional Foods and Nutricosmetics
Personal Care Natural Personal Care
Healthcare
Nutritional Supplements Ingredients Suppliers Over The Counter
Pharmaceuticals
Functional Foods Natural and Organic Foods
Food- Human & Animal
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© 2015 RiceBran Technologies All rights reserved
Unlocking the Nutritional Value of Rice Bran
Functional Foods and Nutricosmetics Defined
FUNCTIONAL FOOD: a natural or processed food that contains known or unknown biologically-active compounds which when ingested in defined quantitative and qualitative amounts provide a clinically proven and documented health benefit Functional Food Center - Dallas, Texas
NUTRICOSMETICS: not only act on skin, hair and nails, but also provide more systemic effects resulting in improved health and fitness Handbook of Cosmetics Science and Technology
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© 2015 RiceBran Technologies All rights reserved
Unlocking the Nutritional Value of Rice Bran
RIBT’s Healthy Living Product Platform
Balanced Nutrition Plant Protein Dietary Fiber Healthy Oils Complex Carbs Phytonutrients
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Functional Foods Evidence-Based Health Benefits Lower Risk of Health Issues Maintains Active Lifestyle
© 2015 RiceBran Technologies All rights reserved
Clean Label Non-GMO Verified Gluten Free Soy Free Vegetarian/Vegan No Added Sugar No Trans Fats No Preservatives
Great Taste & Convenience Great Tasting Foods & Beverages On-the-Go Packaging Meets Changing Consumer Needs
Unlocking the Nutritional Value of Rice Bran
RIBT’s Improving Sales Mix – Converting Feed to Food
Product Category
2013
2014
40%+
Packaged Functional Foods/ Nutricosmetics
0%
53%
30%
Functional Ingredients
22%
15%
20%
Food Ingredient
32%
16%
10%
Animal Feed
46%
16%
USA Segment Revenue
$12.0 Mn
$23.1 Mn
Gross Margins
24.5%
30.2%
Gross Margin %
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© 2015 RiceBran Technologies All rights reserved
Unlocking the Nutritional Value of Rice Bran
2015 – Strategic Initiatives
Secure debt facility to fund sales growth - Completed $8 million three year debt facility with Full Circle Capital in May 2015
Secure additional bran supply in U.S. - In negotiations to install stabilization equipment in third California mill for 2015 harvest
Improve sources and quality of raw rice bran in Brazil - Signed agreement in April 2015 to install RBT’s proprietary stabilization equipment at CAAL’s
Increase marketing efforts to drive sales growth to new and existing customers - Substantial increase in trade show participation, sponsorships and direct sales activity throughout 2015
Monetize new product formulations and R&D efforts - New product launches of high margin functional ingredients and finished products expected throughout 2015 with customers in US, Mexico, Japan, Korea and the U.S.
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© 2015 RiceBran Technologies All rights reserved
Unlocking the Nutritional Value of Rice Bran
Driving Revenue Growth
Health & Wellness Targets
Geographies
Foods and beverages
Mexico
Formulation/development of functional
Made in USA packaged
ingredients & packaged finished products
functional foods and ingredients
NutriCosmetics Rice bran oil, functional derivatives and packaged finished products
Companion Pets
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Brazil Defatted bran into the US meat industry; rice bran protein project under development
Japan/Korea
Clean label functional ingredients and
Demand for “Made in USA”
packaged value added formulas
packaged functional foods
© 2015 RiceBran Technologies All rights reserved
Why Invest in RIBT?
Capacity installed in 2014 can support sales of $100 million to $150 million over the next 3 to 5 years Improving sales mix to higher margin functional foods and nutricosmetics Our products meet consumer demand in all healthy living categories Intellectual property provides significant competitive advantages Product development in 2014 has built a strong pipeline in functional foods/beverages and nutricosmetics for 2015 Expect cash flow positive operations in 2015 in both operating segments
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© 2015 RiceBran Technologies All rights reserved
Unlocking the Nutritional Value of Rice Bran
Management Team W. John Short
J. Dale Belt, CPA
Mark McKnight
Robert Smith, Ph. D
CEO & President
Chief Financial Officer
SVP Sales & Marketing
SVP Operations, R&D
• Over 30 years of experience in finance and accounting including strategic planning, due diligence, cash flow analysis, financial forecasting, and SEC reporting
• Joined RiceBran Technologies as Senior Vice President of Contract Manufacturing in 2014
• Over 20 years experience managing R&D and business development in the Ag-biotech industry
• Previously served as the CEO and Chairman of H&N, a leading company in the natural products packaging & distribution industry, and has been in the Natural Products industry since 1993
•Director of Business Development at HerbalScience Group. Served as Director of R&D at Global Protein Products Inc. and PhycoGen Inc., and was Project Leader at Dekalb Genetics, a Monsanto Company
• Started developing unique product formulations in 1995 and has developed successful products that cover three key channels of distribution: MLMs, health food stores and mass retailers
• Previously served as Research Assistant Professor at the AgBiotech Center at Rutgers University; Post-Doctoral work in Plant Molecular Biology at the University of Missouri Columbia
• Joined RiceBran Technologies in July 2009 • Brings over 30 years global management experience and has held C-level management positions with consumer products and financial services businesses in Asia, Europe and the Americas • Spent over a decade in corporate, government lending and financial institutions lending with Citibank in New York, Venezuela, Ecuador and Hong Kong • Graduated from Dartmouth College and the Thunderbird School of Global Management.
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© 2015 RiceBran Technologies All rights reserved
• Prior to joining RiceBran Technologies in June 2010, was Managing Director of Sierra Consulting Group’s restructuring practice •Managing Director in the restructuring practices of Pricewaterhous Coopers and FTI Consulting; over 15 years in the private sector where he held various C-level positions •B.S. in Accounting from the U. of Kentucky; CPA licensed in Kentucky, a Certified Turnaround Professional and a Certified Insolvency and Restructuring Advisor
• Current member of the Natural Products Association (NPA) and the Institute of Food Technologists (IFT)
Unlocking the Nutritional Value of Rice Bran
• Doctor of Philosophy Degree in Molecular Genetics and Cell Biology from the University of Chicago; Bachelor of Arts Degree in Biology, from the University of Chicago
Thank You
R iceBran Technologies is unlocking the nutritional value of
rice bran, an underutilized, renewable and sustainable byproduct of the global rice milling industry with the potential to help satisfy a significant portion of increasing global demand for edible oil, protein, dietary fiber and other human food ingredients and functional foods.
Unlocking the nutritional value of rice bran
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© 2015 RiceBran Technologies All rights reserved